AI Analyst Summary
Johnson & Johnson's bull thesis rests on its durable pharmaceutical franchise, with 6.6% revenue growth driven by its MedTech and Innovative Medicine segments offering a stable growth runway. Analyst sentiment is firmly constructive — 16 of 23 analysts rate it a Buy — reflecting confidence in pipeline execution and post-Kenvue restructuring clarity. The primary risk is valuation: a PEG of 4.56 signals the market is pricing in significant growth that current EPS trends (-0.9% YoY) have yet to deliver, leaving limited margin of safety.
Fundamentals
Pe
Trailing P/E 30.4x / Forward P/E 22.0x · 3.0/5
Trailing P/E of 30.4x is modestly above the healthcare sector median, but the forward P/E of 22.0x suggests near-term earnings improvement. Valuation is roughly in-line with large-cap pharma peers — neither cheap nor stretched on a forward basis.
Peg
PEG 4.56 · 1.0/5
A PEG of 4.56 is well above the 3.0 threshold for a score of 1, indicating the stock is significantly overvalued relative to its current earnings growth rate. This is a meaningful red flag on a growth-adjusted valuation basis.
Analyst Rating
Buy consensus (1.9) · 4.0/5
Consensus rating of 1.9 on an inverted scale (1=Strong Buy, 5=Sell) maps to a score of 4. With 16 Buys, 6 Holds, and 1 Sell across 22 analysts, the Street is constructively positioned on JNJ with strong coverage depth.
Earnings Trend
EPS growth -0.9% YoY; Revenue +6.6% YoY · 2.0/5
Earnings are slightly negative YoY at -0.9%, while revenue growth of 6.6% shows the top line remains healthy. The disconnect between revenue and earnings growth suggests margin pressure or elevated costs, limiting conviction on earnings momentum.
Price Target Beat
3 of 4 quarters (EPS beat rate) · 3.0/5
Beating estimates in 3 of the last 4 quarters is in line with expectations. Only 4 quarters of data are available, so mapped to score 3 per insufficient-history guidance, consistent with the 3-of-4 beat rate.
Management
Consistent executor with mixed earnings signal · 3.0/5
Management demonstrates reasonable execution with a solid EPS beat rate and strong revenue delivery, but the slight YoY earnings decline tempers the outlook. Capital allocation remains credible for a diversified healthcare giant, though the earnings headwind warrants a neutral score.
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